DoD's $198.8M Naval Aviation Contract Awarded to Maritime Helicopter Support Company LLC

Contract Overview

Contract Amount: $198,882,028 ($198.9M)

Contractor: Maritime Helicopter Support Company LLC

Awarding Agency: Department of Defense

Start Date: 2007-10-12

End Date: 2008-09-30

Contract Duration: 354 days

Daily Burn Rate: $561.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NAVAL AVIATION

Place of Performance

Location: WOODBRIDGE, PRINCE WILLIAM County, VIRGINIA, 22192

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $198.9 million to MARITIME HELICOPTER SUPPORT COMPANY LLC for work described as: NAVAL AVIATION Key points: 1. Significant contract value of $198.8 million for naval aviation support. 2. Sole-source award raises questions about competition and potential price inflation. 3. Contract duration of 354 days suggests a focused, short-term need. 4. Lack of small business participation noted.

Value Assessment

Rating: questionable

The contract value of $198.8 million is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may lead to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for a nearly $200 million contract likely results in a higher cost to taxpayers than a competitively awarded contract.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Navy's reliance on a single vendor for this critical support could pose a risk. Lack of transparency in the procurement process hinders public scrutiny.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
No small business participation
High contract value

Positive Signals

Firm fixed price contract type

Sector Analysis

This contract falls under the Aircraft Manufacturing sector, specifically supporting naval aviation. Spending benchmarks for similar sole-source contracts are difficult to establish without competitive data.

Small Business Impact

The contract explicitly states no small business participation. This represents a missed opportunity to support small businesses within the defense industrial base.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the government received the best possible value and that the justification for not competing was sound.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
Potential for overpayment
No small business utilization
Dependency on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $198.9 million to MARITIME HELICOPTER SUPPORT COMPANY LLC. NAVAL AVIATION

Who is the contractor on this award?

The obligated recipient is MARITIME HELICOPTER SUPPORT COMPANY LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $198.9 million.

What is the period of performance?

Start: 2007-10-12. End: 2008-09-30.

What was the justification for awarding this contract on a sole-source basis instead of competing it?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation into the contract file would be required to determine the specific rationale.

How does the $198.8 million contract value compare to industry benchmarks for similar maritime helicopter support services?

Without competitive bidding data or specific service details, it is challenging to establish a precise benchmark. However, the absence of competition for a contract of this magnitude raises concerns about whether the price reflects fair market value. Benchmarking would require comparing it to similar contracts awarded through full and open competition.

What is the potential risk to naval aviation readiness if this sole-source provider experiences issues?

A sole-source award creates a significant dependency on a single contractor. If Maritime Helicopter Support Company LLC faces operational issues, financial instability, or supply chain disruptions, it could directly impact naval aviation readiness. The lack of alternative providers due to the sole-source nature exacerbates this risk.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2655 INTERPLEX DRIVE SUITE 103, TREVOSE, PA, 19053

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $198,882,028

Exercised Options: $198,882,028

Current Obligation: $198,882,028

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0038304D028N

IDV Type: IDC

Timeline